Obama’s College Loan Plan Would Save Avg. Borrower…’Between $4.50 and $7.75 per Month’

Yes, you read it correctly. Obama is determined to bypass congress and our constitutional guidelines for the simple cost of a cup of coffee or a good beer. So, that's what you need to save every month if you have outstanding student loan debt. Do it yourself. Slim down your phone/data plans, cut your cable t.v. options, eat out less, Switch to generic brands, buy cheaper domestic beer, quit smoking or reduce smoking. etc etc etc. All ideas and strategies that will save you just as much and more than Obama's scheme.

Even on the high end, assuming $100k in student loans, you would only save about $28 a month.

Essentially, the president has just offered a college student bailout as the finial initiative of his “We Can’t Wait” economic plan.

Two key provisions offered in the plan (as pointed out by Business Insider):

People who hold both government-backed private sector student loans and direct loans issued by the government will be able to consolidate those debts in one government-backed loan, thereby lowering interest rates and reducing monthly payments. The administration estimates this will affect about 5.8 million people.
The plan will accelerate income-based payment programs already passed by Congress, which allow college graduates to cap their payments at 10 percent of their income, rather than the existing 15 percent cap. Under Obama’s executive rollout, the new cap, originally scheduled to take effect in 2014, will take effect in 2013 for an estimated 1.6 million students and recent graduates.

Here is the meat and potatoes

Daniel Indiviglio of The Atlantic put together an interesting report that calculates the impact of the president’s proposals:

Consolidation: The first would clearly be the most significant [impact], because it is aimed at helping more student loan borrowers. How much would an interest rate reduction of up to 0.5 percent affect payments?

For the average borrower, the impact would be small. In 2011, Bachelor’s degree recipients graduating with debt had an average balance of $27,204, according to an analysis done by finaid.org, based on Department of Education data. That average has ballooned from just $17,646 over the past decade.

Using these values as the high and low bounds of average student debt over the last ten years, the monthly savings for the average student loan borrower would be between $4.50 and $7.75 per month. Clearly, this isn’t going to save the economy

www.theblaze.com... onth%e2%80%99/


Once again Obama fails to diagnose the problem and insists on treating the symptoms. Increases in College tuition and fees are out of control so naturally the number of student loans has increased as has the avg. amount of those loans. So we have an academic bubble of overpriced tuitions and the loans to pay for them (secured by the govt). Sounds like the recent mortgage/housing crisis.

student loans have grown by 511% since 1999. Meanwhile, disposable income has grown by just 73%. As this chart also shows, most outstanding student loan debt (82%!) was accrued by students over just the past decade.

www.theatlantic.com...

I'm growing weary of the circus sideshow that has overtaken the White House.

Man thats AWESOME!! I could buy a whole can of beer and a single cigarette with that kind of scratch.

reply to post by jibeho
Hey, I don't see you buying all college kids in the US the beer and cigarettes they need to cope with being buried under a mountain of debt!

Lout.

Honestly...not entirely surprising. So this is what came from the big plan that my friend told me made it easier and cheaper for him to get student loans, or is there something else floating around out there that I should be looking for?

reply to post by Praetorius


I wish I could afford to. However, in this case, skyrocketing tuition and fee hikes are disabling the students and their parents. Why don't I see anyone addressing these fine institutions of higher learning and even higher salaries and spending sprees? Tuition at my alma mater has nearly tripled since I graduated in 1994.

reply to post by jibeho
Why don't you see anyone addressing it? Oh, they're out there trying.

The true question is why don't you see anyone in a position able to actually address such things truly trying to do anything about it, and as far as I can tell, that's because there's an agenda at play, and those people don't really seem to understand or even honestly care.

It doesn't seem to matter who's in power, all I can honestly see when I look at things is a wholesale looting of the average citizen and the resources of this (probably most?) country taking place, and various related things. In general, the scum has pretty much all risen to the top and it seems clear to me that SOMETHING against the general populace has willfully been set in motion. Otherwise, the steps that have been taken don't make much sense, and it seems there were much more obvious and effective ways to address things.

Say of his ideas what you will, but this is why I'm supporting Ron Paul (to whatever end) - hopefully we're not so far off course that a correction can't be made.

Hold on tight, and take care.

Paying off large loans for school is one thing, getting a job with your degree to pay off those loans is another.

reply to post by jibeho


Forget Obama's aid to the students...shouldn't we be getting upset with the colleges and their rediculous tuitions that they are charging kids...nobody is getting mad at them for charging such rediculous fees.....

Well why deal with the actual problem when you can basically buy votes with this scheme. Student loans are a risk in the first place, not much thought go's into if a given field is employable after graduation. Maybe some loans need to be denied on the basis that there is not enough positions in the field to warrant more degrees! College is a investment and if it is not a safe one, people shouldn't be diving in.

reply to post by jibeho


"Obama’s College Loan Plan Would Save Avg. Borrower…’Between $4.50 and $7.75 per Month"

And how much will implementing and administering his plan cost the average taxpayer each month?

Insert ridiculously high dollar amount here:$________

Wow a whole 8 bucks!

Let's give it up for the fearless leader and his "master plan" of vote buying!

Hip Hip Horrah! ok let's not and say we did which is par for the course of the mythos that Obama "how much will it take to buy your vote" Potus.

Sickening. Infuriating. How cheap people are these days.

Meh two thumbs down on my worthless meter

I wonder?

Has Goldman Sachs or anybody found a way to package the student loans and sell derivitives yet?



Maybe the defaults will get nullified if "nobody" has the titles

Originally posted by this_is_who_we_are
reply to post by jibeho

 

"Obama’s College Loan Plan Would Save Avg. Borrower…’Between $4.50 and $7.75 per Month"

And how much will implementing and administering his plan cost the average taxpayer each month?

Insert ridiculously high dollar amount here:$________

edit on 10/27/2011 by this_is_who_we_are because: ly high

I think that's the real plan.

the govt hires contractors to administer bad paper.

An intersting bone of contention is that student loans are given WITHOUT risk of NOT finding a job qualified in the application. Those majoring in Engineering and Nursing are given the same priority as those who choose Womyns Studies and Philosophy.

The sad truth is that vocational skills (carpentry, plumbing, eletrician) are in demand...as most are steered away from vo-tech programs and into college (and debt).

The real plan...

One class at a time, bought and paid for before you even attend.

It worked for this old high school drop out and I'm debt free.

My daughter is going to college next year. We went from looking at a minimal expense university to junior college for the first two years ( for medical degree ). Junior College for the first two years after scholarships and grants will be almost free ( low income-single parent family). University would be about 50,000 debt for first two years.
It is rediculous!
Junior college it is, to begin with. We'll deal with the rest when we have to, but not until then...